GW Pharmaceuticals (NASDAQ:GWPH) investors lost ground to the market month as the stock declined 19% compared to a 2% increase in the S&P 500, according to S&P Global Market Intelligence. The drop put returns back to even with the broader market after having soared by over 75% earlier in 2019.
The biotech stock's September decline came as many companies tied to the marijuana space were pushed lower on Wall Street. CEO Justin Gover made the case to shareholders that his company has a much broader portfolio than just cannabis-related treatments and shouldn't be viewed as a simple pot stock. However, investors still sent shares lower last month amid a drop in valuations among the wider niche.
GW Pharmaceuticals has an opportunity to recapture the growth narrative when it announces quarterly earnings in early November. That report will include important updates on Epidiolex, which has found strong early demand since launching in the U.S. about a year ago. The product recently received approval to launch in key European markets, including France and Germany, so look for Gover and his team to discuss that rollout, plus their wider development pipeline, in next month's earnings update.